How to open a padel club in UAE?

Opening a padel club in the UAE presents a promising business opportunity, given the sport's growing popularity across the region. To launch this venture, start with a detailed market study to identify ideal locations with strong demand and minimal competition.

You must then determine the legal structure, typically setting up a Limited Liability Company (LLC) through the Department of Economic Development (DED) for a mainland setup or through relevant Free Zone authorities if operating in a zone like Dubai Sports City. To proceed, you'll need initial approvals from the DED (or Free Zone equivalent), reserve a trade name, and obtain the relevant activity license—usually listed under sports services or club management. If the club offers coaching or sports training, approval from the General Authority of Sports and UAE padel association are also required. Additional approvals from Dubai Municipality and Civil Defence are necessary to ensure the premises comply with health, safety, and building regulations.

For a sport-related business cost, the license and approvals are not the only expense. There are several other factors such as employees, factory premises, administration & marketing costs which needs to be considered.

Facility development must follow international padel standards. Courts should be 10m x 20m and weather-resistant, with supporting infrastructure like locker rooms, lounges, and retail areas. These need to meet Dubai’s construction and zoning rules, for which building permits must be secured in advance. Partnering with an experienced fit-out contractor can streamline this process and ensure compliance.

Staffing should include certified coaches and trained administrative staff, as well as a valid labour and immigration setup to sponsor employees. A digital booking and customer management platform is essential to operate efficiently. Marketing efforts should focus on digital outreach, local partnerships, and hosting events to grow a community around the club.

From a financial perspective, investors must plan for licensing, real estate, court construction, equipment, staffing, and marketing. Common revenue models include pay-per-play, memberships, and sponsorships, each providing scalable income based on customer engagement.

What are the steps to set up a padel club?

Below is an integrated outline on how to set up a padel club in Dubai:

 Select the jurisdiction: After determining the business activity, choose whether to establish the company in a free zone or on the mainland. Each jurisdiction operates under different rules and offers distinct advantages. The choice should align with the business model and long-term goals.

 Decide on the legal structure: The legal form—such as an LLC, sole proprietorship, or civil company—must be chosen early on. This structure determines how profits and losses are distributed and how liabilities and assets are managed.

 Choose a business name: Selecting a name for the business is a key step. It must comply with UAE naming conventions—avoid any offensive language, religious references, or names that resemble existing companies or well-known brands.

 Apply for a trade license: Once the jurisdiction is selected, apply for the relevant trade license. For mainland setups, this is done through the Department of Economic Development (DED); for free zones, directly through the respective authority. It’s advisable to work with a company setup expert to streamline the process.

 Obtain additional approvals: Depending on the nature of the business, you may require further approvals from government entities such as the General Authority of Sports, Dubai Municipality, Civil Defense, and the UAE Padel Association. These are especially important if the club will offer coaching, operate sports facilities, or host events.

 Apply for visas: A valid UAE residence visa is required to live and work in the country. Entrepreneurs can apply for their own visa and sponsor visas for employees or family members, subject to business size, structure, and personal income in the case of dependents.

 Open a corporate bank account: Opening a business bank account is essential for operations. Entrepreneurs should research various financial institutions to find one that aligns with their company’s needs and meets eligibility criteria, such as proof of business activity and office space.

In summary, starting a padel club in the UAE requires market understanding, legal setup through mainland or free zone authorities, approvals from DED, Dubai Municipality, Civil Defence, and the Sports Authority, along with proper construction and staffing. With the right strategy, the venture offers strong potential in a fast-growing fitness and leisure market.

How can Sovereign PPG help?

Establishing a padel club in Dubai involves a thorough understanding of local regulations and international maritime standards. The process, while rewarding, can be intricate and demands a significant investment of time and resources. This is where the expertise of a professional corporate services provider becomes invaluable.

Sovereign PPG offers unrivalled expertise in the UAE's legal and regulatory landscape and direct access to government bodies and regulatory authorities. We can guide you through every step of setting up your padel club business in Dubai, from initial registration with the DED to obtaining your trade licence and ensuring compliance with all local and international regulations.

If you need assistance with this or with any other related company setup, restructuring, local partner or PRO support matter in Abu Dhabi, Dubai, the wider UAE, Oman, Bahrain, Saudi Arabia or Qatar, then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at SovPPG@SovereignGroup.com or complete the contact form below and we will be delighted to assist you.